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GOOD DAY!! As you can see by the article below, it appears that the very successful First Time Homebuyer Tax Credit has been extended until April of 2010 AND it also has some benefits to current homeowners. Although this is not signed, sealed and delivered, all of the conversation out of Washington says that this extension will be signed by the President by the end of this week. One item to consider is that the original bill states that a purchase contract must be signed by April 30, 2010 but may settle as late as June 30, 2010. This is great news if you are buyer and were not sure that you could close on a home by the end of this month; and if you are currently a homeowner, this may encourage you to move up to a home that may have just appeared on the market. There are some caveats, such as remaining in the newly purchased home for three years, but the credit is a true credit if you remain for longer than the three year timeframe. As is with all cases, if you have tax questions, please contact your tax professional. And if you are looking to take advantage of the credit and need assistance, please contact me at your convenience at Don@DonRoth.com or visit my web site, www.DonRoth.com. You can view all the available homes in the area by clicking the search listings tab.

RISMEDIA, November 5, 2009— After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.